UAE GSM revenues to exceed US$ 1.5 billion by 2006
Based on a report by the Arab Advisors Group, total GSM and PSTN revenues in the UAE are projected to grow from US$ 1.6 billion in 2000 to more than US$ 2.48 billion by the end of the year 2006.
Total GSM (Global System for Mobile communications) and PSTN (Public switched telephone network) revenues in the UAE are projected to grow from US$ 1.6 billion in 2000 to more than US$ 2.48 billion by the end of the year 2006 according to a report by Jordan-based market research agency Arab Advisors Group(AAG). The report states that despite the high penetration levels already achieved in the UAE’s communications services, its market still has high Average Revenue Per User (ARPU) levels.
“The GSM market still has room for growth. The subscriber base grew rapidly at a compound annual growth rate (CAGR) of 66% between 1997 and 2000,” said Hala Baqain, an analyst from AAG. “Even at a quite high penetration rate of close to 58%, the monthly ARPU per GSM user in the UAE is an impressive 54 US$. This qualifies as a dream ARPU for GSM operators in competitive countries with a similar penetration rate”, Ms. Baqain added.
Based on an analysis of the UAE’s monopoly telecommunications company Etisalat and its business divisions, the report also states that GSM has contributed to 41% of Etisalat’s total revenues in 2000. GSM revenues are projected to exceed US$ 1.5 billion by the end of 2006, constituting more than 62% of the combined GSM and PSTN revenues in the country. The PSTN market in the UAE is also likely to grow at a CAGR of 5% and to exceed 1.3 million lines in 2006, a penetration rate of 32.5%.